Thursday, December 20, 2012

As RIMM reports tonight, the question is, is there a leak that we can take advantage of.

I do see some odd things on the charts that worse than the last update.

I can't predict what earnings will be, I just use 3C to give you an idea of what the most likely reaction is and many times that is not the same day during after hours. I would use after hours trade if it is a favorable response to your position, but if it is not, I wouldn't judge too quickly as we have seen many times the stock move 180 degrees in the opposite direction the next day from AH after an earnings report.

I personally am not fond of shorting RIMM, but I might take some profits off the table on these signals as they do not look good for very near term trade (as is at least a pullback, maybe something bad in earnings).

Remember the longer term charts are spectacularly strong.

2 min intraday

15 min chart looks worse now in a leading negative divergence than at the last update linked above.

Here's the 15 min chart's trend, while it doesn't look good for near term trade, it's not that bad in context of the longer term trend.

Even the 30 min chart has a leading negative divergence here.

I'd be careful, maybe take some profits, using options here (puts) may be very difficult as implied volatility before earnings and after make it very hard to make money even with a trade going big time in your favor.

Thursday, December 20, 2012

As RIMM reports tonight, the question is, is there a leak that we can take advantage of.

I do see some odd things on the charts that worse than the last update.

I can't predict what earnings will be, I just use 3C to give you an idea of what the most likely reaction is and many times that is not the same day during after hours. I would use after hours trade if it is a favorable response to your position, but if it is not, I wouldn't judge too quickly as we have seen many times the stock move 180 degrees in the opposite direction the next day from AH after an earnings report.

I personally am not fond of shorting RIMM, but I might take some profits off the table on these signals as they do not look good for very near term trade (as is at least a pullback, maybe something bad in earnings).

Remember the longer term charts are spectacularly strong.

2 min intraday

15 min chart looks worse now in a leading negative divergence than at the last update linked above.

Here's the 15 min chart's trend, while it doesn't look good for near term trade, it's not that bad in context of the longer term trend.

Even the 30 min chart has a leading negative divergence here.

I'd be careful, maybe take some profits, using options here (puts) may be very difficult as implied volatility before earnings and after make it very hard to make money even with a trade going big time in your favor.

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